When the Auditor Has Properly Planned and Performed the Audit

question 7

Multiple Choice

When the auditor has properly planned and performed the audit to reduce risk to an acceptably low level that is consistent with the objective of the audit,this means that the auditor has conducted enough work to

• A)reduce inherent risks to an acceptable level.
• B)increase detection risk to a satisfactory level.
• C)detect errors in internal controls so that control risk can be set higher.
• D)detect material misstatements to the targeted level of assurance.

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Definitions:

Schedules

Defined timetables or plans outlining tasks, activities, or events and the times at which they are intended to happen.

Tactical Planning

Short-term, detailed planning that focuses on the current operations of an organization and how to optimize them.

Middle Managers

Individuals in an organization responsible for managing entry-level employees while reporting to higher-level management, often playing a key role in implementing the company's policies and plans.

Supervisory Managers

Managers who have direct oversight over the work of frontline employees, focusing on monitoring and directing day-to-day operations.